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Next month, some businesses will see reductions in energy bills

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PPL Corp. in Allentown.
PPL Corp. in Allentown. - (Photo / )

Starting July 1, business and residential customers of UGI Utilities Inc. of Reading and PPL Electric Utilities of Allentown will see monthly reductions in their utility bills because of federal corporate income tax reform and lower gas costs.

Business and residential heating customers of UGI’s gas division will see their monthly bills decrease by an average of $1.81 because of a tax relief credit, based on a filing UGI made with the Pennsylvania Public Utility Commission. UGI said this decrease comes on top of a previously announced 2.8 percent cut based on lower purchased-gas costs, effective June 1.

That means the average residential bill would go from $69.36 to $67.55 as of July 1.

Joseph Swope, spokesperson for UGI Utilities, said these decreases are across the board for all customers and do not take into account another 9.5 percent decrease that will be effective Dec. 1.

The company has not projected that average monthly bill reduction, he added.

The Pennsylvania Public Utility Commission ordered utility companies to provide a credit to customers based on the decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act of 2017.

Meanwhile, PPL Electric Utilities said its business and residential customers would also see a reduction in their monthly bills.

The state agency approved a request from PPL to assign a monthly refund of 7.05 percent on the base distribution portion of customers’ bills, rather than the 0.56 percent reduction ordered by the state agency in May.

PPL said the average residential customer using 1,000 kilowatt hours a month will now save $3.48 per month on its distribution charges, while a typical small-business customer using 1,000 kw hours a month would save about $2.78.

On May 17, the state agency ordered PPL Electric and some other state utilities to make a rate filing to refund costs associated with corporate tax reform. The state agency specified how much each affected utility should refund to customers, shown as a percentage of distribution revenues.

The state agency’s original reduction of 0.56 percent was based on 2017 current income tax expense information. Based on additional guidance from the state agency, PPL said its updated filing reflects current and deferred tax estimates for 2018.


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Brian Pedersen

Brian Pedersen

Reporter Brian Pedersen covers construction, development, warehousing and real estate and keeps you up to date on the changing landscape of our community. He can be reached at brianp@lvb.com or 610-807-9619, ext. 4108. Follow him on Twitter @BrianLehigh and read his blog, “Can You Dig It,” at http://www.lvb.com/section/can-you-dig-it.

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